Foxconn postpones IPO of its India unit

21 Oct 2022 , 11:29 AM

Foxconn Technology Group has said that the company’s initial public offering (IPO) of Rs 5,000 crore for the India business, Bharat FIH on the BSE and NSE stock exchanges, has been postponed due to the state of the market.

Without providing a new deadline, Foxconn said in a statement that it would pursue a proposed spinoff when circumstances improve.

The proposed spin-off is “subject to, among other things, the approval of the relevant regulators in India, market conditions, and other factors, and accordingly, there is no assurance that the proposed spin-off will take place or as to when it may take place,” the statement continued. Take note, shareholders and potential investors in the company.

Bharat FIH is a Foxconn Technology Group firm and a division of FIH Mobiles. It produces electronics for Nokia and Xiaomi.

The investment bankers working on the IPO include Citi, BNP Paribas, HSBC Securities, and Kotak Mahindra Capital. The legal advisers are S&R Associates and Shardul Amarchand Mangaldas.

Later, in June of this year, Sebi approved raising the aforementioned sum through an IPO. According to the Draft Red Herring Prospectus, the initial share offering of Bharat FIH consists of a fresh issue of shares valued at Rs2,502 crore and an offer for sale (OFS) of up to Rs2,502 crore by the promoter group and Foxconn unit Wonderful Stars (DRHP).

Wonderful Stars currently owns 99.97 percent of the business. The leading provider of Electronic Manufacturing Services (EMS) in India is Bharat FIH, formerly known as Rising Stars Mobile India, with an estimated 15 percent market revenue share in the fiscal year 2021.

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